SAO PAULO (Reuters) -Brazilian President Luiz Inacio Lula da Silva announced on Friday a 12 billion reais ($2.21 billion) debt renegotiation package aimed at supporting up to 100,000 agricultural producers, primarily small and medium-sized farmers affected by recent climate events.

WHY IT'S IMPORTANT

The measure comes as Brazil's largest state-run bank, Banco do Brasil, faces record default levels in its agribusiness portfolio, threatening the stability of the country's crucial agricultural sector.

BY THE NUMBERS

The executive order signed by Lula guarantees 12 billion reais in total relief funding to up to 100,000 producers eligible for support.

Banco do Brasil currently has 20,000 defaulting clients, its CEO Tarciana Medeiros said last month.

KEY QUOTES

"Today I signed an executiv

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